Department for International Trade

Correction to Statement HLWS743 – UK Trade Update

Lord Grimstone of Boscobel: My Rt Hon Friend the Secretary of State for International Trade (Liz Truss MP) has today made the following statement.Today, the Government submitted its notification of intent to begin the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) accession process.This notification of intent comes shortly after the UK celebrates one year since leaving the EU and becoming an independent trading nation.It is our first step in accession to CPTPP which is part of a big strategic move that aims to deepen the UK’s access to fast-growing markets and major economies of the future, including Mexico, Malaysia and Vietnam, for the benefit of UK business.Joining the £9 trillion free trade area will cut tariffs for vital UK industries like food and drink and cars and create new opportunities for future industries like tech and services, ultimately supporting and creating high-value jobs across the United Kingdom and helping the country build back better from Covid.Unlike EU membership, joining does not require the UK to cede control over our laws, borders, or money.The UK would be the first country to take forward accession negotiations since the agreement was formed in 2018, putting us at the front of the queue to become the next full member. A number of other economies have also expressed an interest in joining, including Thailand, Taiwan, Colombia and South Korea. Joining is a critical part of the government’s wider trade strategy, which aims to deepen links with some of the fastest growing parts of the world, partnering with countries who believe in free and fair trade.CPTPP is one of the most important free trade areas in the world, accounting for 13% of global GDP in 2019. CPTPP GDP would rise to 16% if the UK were to join.CPTPP removes tariffs on 95% of goods traded between members and reduces other barriers to trade across four continents. CPTPP countries accounted for £111 billion worth of UK trade in 2019 and the 2016-2019 annual growth in UK trade with CPTPP member countries was 8% a year. Joining now opens the way to further increase trade with these economies, enabling the UK to build back better by bringing more opportunities for our businesses and supporting jobs for our people.Benefits that membership will bring for businesses include:Modern digital trade rules that allow data to flow freely between members, remove unnecessary barriers for businesses, and protect commercial source code and encryption.Eliminating tariffs quicker on UK exports including whisky (down from 165% to 0% in Malaysia) and cars (reducing to 0% in Canada by 2022, two years earlier than through the UK-Canada trade deal).Rules of Origin that allow content from any country within CPTPP to count as ‘originating’. For example, this would mean that cars made in the UK could use more Japanese-originating car parts, such as batteries.Easier travel for businesspeople between CPTPP countries, such as the potential for faster and cheaper visas.As well as removing trade barriers, CPTPP helps businesses trade easily across borders and keep supply chains open and predictable. Joining CPTPP will help us diversify our supply chains, which could help make us more resilient in an adverse environment such as the Coronavirus pandemic.Joining CPTPP also creates an opportunity to help level-up the UK. UK regions and nations exported between £1bn and £3.7bn worth of goods to CPTPP countries last year, including £2.4billion worth of exports from Scotland, £2billion from the North West, and £3.1billion from the East Midlands.CPTPP membership is a key part of the Government’s plan to position the UK at the centre of a network of modern free trade deals that support jobs and drive economic growth at home, while also positioning us as a champion of free trade and reform of the rules-based system abroad.CPTPP sets modern rules in areas of increasing importance for UK industry and business. This includes strategically important sectors such as digital, financial, professional and business services. Digitally delivered services from the UK to CPTPP members, for example, already hit £18.7billion in 2019, joining now creates an opportunity to unleash forward leaning parts of our economy like this.Furthermore, membership puts the UK is in a prime position to help reshape these global rules in UK strengths like digital and data, and in services.It would help to secure our future place in the world as a leader in a network of countries committed to free trade and send a powerful signal to the rest of the world that as an independent trading nation the UK will champion free trade, fight protectionism and remove barriers to trade at every opportunity. In doing so, we aim to turn the UK, a newly independent trading nation, into a global hub for businesses and investors wanting to trade with the rest of the worldOver the last two years, we have engaged with all 11 member countries at both ministerial and official level to discuss UK accession to CPTPP. All CPTPP members have welcomed the UK’s interest in accession.As part of one of the largest consultation exercises run by the UK Government in 2018, we sought views on potential UK accession to CPTPP and are using these responses to inform our preparations. We are continuing to engage business, civil society, and trade unions on an ongoing basis where they can outline their priorities.As we have committed, the UK will publish its negotiation objectives, scoping analysis, and consultation response for public and parliamentary scrutiny, and when we are ready to begin formal negotiations.We will only accede to CPTPP on terms compatible with the UK’s broader interests and domestic priorities.The Government has been clear that the NHS and the price it pays for drugs is not for sale in any trade negotiations – including CPTPP – and that it will not sign trade deals that compromise the UK’s high environmental protections, animal welfare and food standards.

Department for Business, Energy and Industrial Strategy

Subsidy control – Designing a new approach for the UK

Lord Callanan: My Right Honourable friend the Secretary of State for Business, Energy and Industrial Strategy Kwasi Kwarteng has today made the following statement:The Government is today publishing a consultation on ‘Subsidy control – Designing a new approach for the UK”. The consultation period will last for 8 weeks.Now that we have left the European Union (EU), the UK has the freedom to design our own subsidy control regime that is tailored to the UK’s national interests. The new system, which will be the long-term replacement for the EU’s prescriptive State aid regime, will be designed to be more flexible, agile and tailored to support business growth and innovation as well as maintain a competitive market economy and protect the UK internal market. It will better enable the Government to deliver on key priorities such as levelling up economic growth in the regions, tackling climate change, as well as supporting our economic recovery as we build back better from the Covid-19 pandemic. Unlike the EU’s State aid rules, which were designed for the particular circumstances of the EU, our own bespoke regime should work for the specific needs of the UK economy whilst also meeting our international commitments. Under the proposed UK system, local authorities, public bodies and the devolved administrations in Edinburgh, Cardiff and Belfast will be empowered to design taxpayer subsidies by following a set of UK-wide principles. These principles will ensure subsidies are designed to deliver strong benefits and good value for money for the UK taxpayer, while being awarded in a timely and effective way.This consultation invites views from businesses, civil society, think tanks, academics, public authorities, and the devolved administrations to ensure our new approach works for the UK economy and supports businesses and jobs in every part of the country. The Government is seeking views on any additions to the subsidy control principles that will underpin the regime, the appropriate role for an independent body within the new system and how best to ensure that subsidies deliver strong benefits, whilst minimising the risk from potentially harmful and distortive subsidies.Subject to the outcomes of this consultation, the Government will bring forward primary legislation to establish in domestic law a system of subsidy control that works throughout the UK.I will place copies of the Consultation in the Libraries of the House, and it can also be found on Gov.uk.

Cabinet Office

Census 2021, England and Wales

Lord True: My Hon. Friend, the Minister of State for the Constitution and Devolution (Chloe Smith MP), has today made the following written statement:The census for England and Wales is scheduled to take place on 21 March 2021. The census is delivered for the UK Government and the Welsh Government by the Office for National Statistics (ONS), based on its recommendations published in the December 2018 White Paper ‘Help Shape Our Future’ [CM 9745].The information the census provides on the population, their characteristics, education, religion, ethnicity, working life and health, ensures that decisions made by national and local government, community groups, charities and business, are based on the best information possible. This enables a wide range of services and future planning to better serve communities and individuals across England and Wales.This will be a digital-first census answered primarily online. The ONS has a target for online completion of 75 per cent. People will be encouraged to respond online if they can on their mobile phones, laptops, PCs or tablets. Help will be available for those who need assistance and members of the public who prefer to complete a paper form will be able to do so.In the context of the coronavirus (COVID-19) pandemic, the safety of the public and the census field force is of the utmost importance to the Government and the ONS. The ONS has designed Census 2021 to be simple, straightforward and safe to complete, to ensure that everyone can be safely counted. Its assessment is that Census 2021 can be carried out safely and securely with the flexibility built into their operation to respond to any changes in risk levels or guidance. The main census field operation will begin only after Census Day. Field staff will never enter people's houses; they will be supplied with PPE, will always be socially distanced and will work in line with all government guidance.The ONS has already launched its schools campaign; its national media campaign will be launched in the coming weeks telling people that Census 2021 is coming and the benefits of the census. On 22 January, the ONS published a statement on the importance of going ahead with the Census in March 2021 and how they plan to do this safely for the public and census staff. This statement is available on the ONS website: https://www.ons.gov.uk/news/statementsandletters/census2021andcoronavirusCensus plans have often had to anticipate and respond to events; for example, twenty years ago the census was delivered effectively during the foot and mouth crisis.Other countries have been able to carry out their census activities during the pandemic, for example, the USA. The ONS have learnt valuable lessons from these experiences.Following the ONS’s advice, the Government is confident that Census 2021 will be successful and provide a wealth of data reflecting the society we live in today, enabling national and local government, community groups, charities and businesses to better serve communities and individuals across England and Wales.The census in Northern Ireland will take place at the same time as England and Wales; the census in Scotland will take place in March 2022 following the decision taken by the Scottish Government last year.

Treasury

Billing Authorities Update

Lord Agnew of Oulton: My right honourable friend the Financial Secretary to the Treasury (Jesse Norman) has today made the following Written Ministerial Statement.Local Government is responsible for the administration of non-domestic rates in England. As part of this function, billing authorities will shortly begin preparing to issue annual rates bills to businesses. Nevertheless, as authorities will be aware, my right honourable friend the Chancellor of the Exchequer will make the Budget Statement on 3 March 2021. The Budget will set out the next phase of the Government’s plans to tackle the virus, protect jobs and support business. Billing authorities in England should therefore consider issuing business rates bills after the Chancellor has set out his plan at the Budget. The Government recognises the crucial work local authorities continue to do to support the pandemic response; by their taking this action, it believes it is in the public interest to avoid any potential confusion for businesses and to avoid the cost of having to re-bill businesses in light of any measures that may be included in the Budget.